Asian bond market notches record year

[HONG KONG] Asia had a record year this year for dollar, euro and yen bond issuance with borrowers scrambling to raise debt and anticipating a rise in global interest rates.

The record volumes came despite volatility in US Treasuries, which serve as benchmarks for pricing these bonds. That volatility, and doubts about the US Federal Reserve's US$85 billion a month bond-buying programme, prolonged the deal execution cycle as windows of opportunity opened and shut rapidly.

The volatility, however, did not prevent issuance hitting a new high with issuers determined to take advantage of rock bottom interest rates and investors hungry for rising yields on investments.